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I don’t like to post Fox articles but the other post from the developer had a fundraising link in it.

This is the shopping center where the mass shooting occurred last month, one student was killed.

I tried to post the developer’s proposed new plans but the post was denied. The developer is plans to focus on black owned businesses only, they will receive &9 million from the city and hope to receive more from a crowdfunding effort.

I went to a community meeting where they presented the plans, talked about addressing the violence problem in the current shopping center. That area has been violent for years, I have faith this new investment will be an improvement.

> I don’t like to post Fox articles

And I typically don't like to read them because it just turns into a where's waldo of spot the lie, distortion, or misleading information. But this article seems like it's actually okay for the most part. Hope the sale goes through and redevelopment goes well and it helps.

Unfortunately the moderators wouldn’t approve the other version of my post because it had a link to the developer’s crowdfunding effort. Fox was the only news station who covered the efforts, I don’t think my notes from the meeting would be good posting material. The information in the Fox article is the same information shared with the community by the councilman and the mayor’s office.

Somebody give me the abridged version of why a privately developed shopping center should receive any public funds at all?

Is it just a straight up bribe to an out-of-town developer who would otherwise avoid the investment?

edit:

The answer to my question above is "yes" this is a grant where the city and state has no expectation of financial return.

So many other red flags in the link below.

From the formc:

TREND plans to use these funds to purchase the Shopping Center, make renovations and capital improvements and cover leasing, financing and soft costs. Anticipated sources and uses are tabulated below and in Exhibit A, the Acquisition and Construction Budget, and you’ll find a detailed operating proforma in Exhibit B.

Sources

First Mortgage Debt $12,794,100

CDFI Subordinate Debt $7,779,505

City Grant $7,500,000

State Grant $5,000,000

NMTC Equity $3,377,800

Insurance Proceeds $2,000,000

Sponsor Equity (TREND) $1,020,000

Investor Member Equity (Crowdfunding) $980,000

Total sources $40,451,405

Uses Purchase Price $17,050,000

Closing Costs $1,307,264

Hard Costs $16,865,712

Soft Costs $4,216,428

Developer fee $1,012,000

Total uses $40,451,405

Investor Return The Company plans to distribute its Available Cash within thirty (30) days after the end of each calendar year, as follows:

1. 49% to the Investor Members, in proportion to each Investor Member’s ownership of Shares; and
2. 51% to the Sponsor.

As of now, the Company has only two classes of securities: Investor Shares and Sponsor Shares. The Investors in this Offering (which may include the Sponsor and its affiliates) will own all the Investor Shares, while all of the Sponsor Shares will be owned by the Manager. Investor Shares which total 1 million, shall include investors in this Offering, and may also include the Sponsor, its affiliates or investors acquired in a follow up offering.

This article also has the Small Change link embedded.

Well, don’t report it the moderators, maybe they won’t delete this post. Even if they do delete at least it stayed up for a few hours.

I am actually glad it was there. The pitch being made is much clearer without the focus on the property's list of issues.

The real deal is HERE

I can’t give an abridged version of the capital improvement process, maybe someone who works with the city can. I believe most of the larger developments in the city receive money from the CIP or TIF.

This is similar to the $650 million TIF for the Port Covington projects, but paid out of current capital improvement funds instead of future taxes.

It’s not similar. Tifs pay for new infrastructure, think streets, sidewalks, water mains. This is just straight up a bribe.

I noticed that the developers are putting in just over a million in their own money as sponsor equity and get just about that exact number back as a developer fee. No doubt they have profits on the markup coming out of mark ups to the hard and soft costs. So with little skin in the game and grants from the state and city far out sizing what they put in, they get 51% of the equity.

This is a two person company. No employees to run projects. Likely a well connected contractor gets tossed the contract.

I'm likely just jaded, but I think 95% of these "social good" companies are only in it to get rich and could not care less about the community.

Did you also note that they have provided no financial history...because there is none.

>Liquidity

>The Company was organized under the Delaware Limited Liability Company Act on August 2, 2022. As of now, we have not yet begun operations other than those associated with general start-up and organizational matters. We have no revenues and very minimal liquid resources (cash). We intend to use the proceeds of this Offering to buy and operate the Project, as described in our business plan, as soon as the Offering closes. We will also use debt (borrow money) to finance a portion of the costs.

>If we cannot raise money in this Offering, or cannot borrow money on the terms we expect, then the Company will probably dissolve.

A Delaware based LLC with no financials and very little skin in the game.

WCGW?

Thank you for the insight. I’m glad people like you are on here to explain the details. I’m not business minded, I live in Southwest Baltimore and work with residents from the Edmondson Village area. I know this shopping center needs help, I don’t know enough about business to understand the details of this.

I’m your opinion is this something we residents should protest so city council doesn’t approve it?

In your opinion this is a bad option for the neighborhood?

TBH, I am not familiar with what other options were considered. This maybe the best/only one on the table.

I am just reading the tea leaves for red-flags using a healthy amount of personal bias and skepticism earned from living here my whole life.

From what I heard at the meetings there were no other options. This area of Baltimore has been plagued with corruption my whole life, I wouldn’t be surprised if this was graft or a bribe. I’ve heard good things about Councilman Burnett so I hoped something good would come of this. Thank you for your insight.

I really can't say. There are some questions that this raises, but if the alternative is to let the shopping center fail and loose retail for the local community, that's not great. I don't think anyone else is stepping up to revitalize the area.

Getting any investment in many neighborhoods is difficult. Is a less than perfect developer better than no one? Probably, but it is at the cost of 14 million in state and city money. Could that money be better spent to help the community?

The shopping center has been failing for at least four decades, most of my adult memory. It’s hard to believe no valid investors were found in all this time. Thank you for your insight.